Heading back to good old Blighty!
May 10th 2011, 4:46 am
#1
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Joined: May 2011
Posts: 8
Heading back to good old Blighty!
Hi All, This is my first post and I had a couple of questions I hope can be answered. Been in the US as a Perm/Res for 12 years and am ready to head for home in UK for good this summer. Bit sorry to go but I have some major family obligations to take care of as soon as I get home. I have no plans to return to the USA. Question is; do I still have to file taxes next year like I've been doing over here or is that all finished with once I go back? I understand my perm/res will be classed as abandoned but that's ok. Thanks in advance!
May 10th 2011, 4:53 am
#2
Joined: Mar 2003
Posts: 68,280
Re: Heading back to good old Blighty!
Hi All, This is my first post and I had a couple of questions I hope can be answered. Been in the US as a Perm/Res for 12 years and am ready to head for home in UK for good this summer. Bit sorry to go but I have some major family obligations to take care of as soon as I get home. I have no plans to return to the USA. Question is; do I still have to file taxes next year like I've been doing over here or is that all finished with once I go back? I understand my perm/res will be classed as abandoned but that's ok. Thanks in advance!
in case of a change of mind
May 10th 2011, 5:42 am
#3
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Joined: May 2011
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Re: Heading back to good old Blighty!
Thanks Ray! Do I still have to file my taxes even when I'm back in UK do you know?
May 10th 2011, 11:00 am
#4
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Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,214
Re: Heading back to good old Blighty!
If you maintain your Green Card you will have to file taxes on all income received anywhere in the world, just like a US citizen. However, if you qualify you get a $92,000 tax credit for being overseas, and can also take an additional credit if you are renting a place overseas. Basically it means the first $100k is not going to be taxed by the USA.
So if the tax issue is off the table, you might consider a re-entry permit to come back, should your situation change. If you read through the Moving Back to the UK forum you'll find a) people who have gone home and never looked back and b) people who have gone home and then 'ping-ponged' back to their adopted 'home' after finding their UK 'home' wasn't what they expected.
Might be worth keeping your options open. In fact, if you don't think there will be a tax bite, you could even consider getting citizenship to give you (and your potential offspring) even more options later in life.
p.s. it is also worth noting that if your income level and time in the US were high, there is a potential that you could be liable for reporting to US tax authorities for a number of years even if you abandon your green card. It's quite complicated.
http://britishexpats.com/wiki/Green_Card_Abandonment
So if the tax issue is off the table, you might consider a re-entry permit to come back, should your situation change. If you read through the Moving Back to the UK forum you'll find a) people who have gone home and never looked back and b) people who have gone home and then 'ping-ponged' back to their adopted 'home' after finding their UK 'home' wasn't what they expected.
Might be worth keeping your options open. In fact, if you don't think there will be a tax bite, you could even consider getting citizenship to give you (and your potential offspring) even more options later in life.
p.s. it is also worth noting that if your income level and time in the US were high, there is a potential that you could be liable for reporting to US tax authorities for a number of years even if you abandon your green card. It's quite complicated.
http://britishexpats.com/wiki/Green_Card_Abandonment
Last edited by penguinsix; May 10th 2011 at 11:02 am.
May 10th 2011, 12:17 pm
#5
SUPER MODERATOR
Joined: Dec 2005
Posts: 88,017
Re: Heading back to good old Blighty!
Hi All, This is my first post and I had a couple of questions I hope can be answered. Been in the US as a Perm/Res for 12 years and am ready to head for home in UK for good this summer. Bit sorry to go but I have some major family obligations to take care of as soon as I get home. I have no plans to return to the USA. Question is; do I still have to file taxes next year like I've been doing over here or is that all finished with once I go back? I understand my perm/res will be classed as abandoned but that's ok. Thanks in advance!
Why don't you apply for citizenship before you leave...that way you leave the door open should you want to return? I realise you don't see that as a possibility at the moment...but never say never.
We have had many members who have moved from the US and have regretted that they can't move back.
May 10th 2011, 2:51 pm
#6
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Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Heading back to good old Blighty!
Yeah, you'll be filing for years to come, probably won't have any taxes to pay though.
Should consider getting citizenship, 12 years is a long time, if things don't work out or you don't end up liking it, seems silly putting yourself in a situation that you might not be able to fix if you regret the move in the future.
Should consider getting citizenship, 12 years is a long time, if things don't work out or you don't end up liking it, seems silly putting yourself in a situation that you might not be able to fix if you regret the move in the future.
May 10th 2011, 2:59 pm
#7
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Joined: May 2011
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Re: Heading back to good old Blighty!
I really appreciate all the feedback! It is a tough decision for sure.
May 12th 2011, 3:38 am
#8
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Joined: Mar 2011
Posts: 58
Re: Heading back to good old Blighty!
You want to make sure that you will be able to collect at retirement if you have paid into US social security. With the state of the social security program right now, it's not too far beyond the realm of possibility that a future administration may change the rules and decide that only US citizens living outside the USA will be entitled to collect social security. My tax guy warned me about that one. You've paid in for 12 years, and there is a tax treaty between the US and UK, so you want to make sure you are able to collect whatever pension you can at retirement (and yes, it will arrive before you can catch a second breath).
May 12th 2011, 4:40 am
#9
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Joined: May 2011
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Re: Heading back to good old Blighty!
You want to make sure that you will be able to collect at retirement if you have paid into US social security. With the state of the social security program right now, it's not too far beyond the realm of possibility that a future administration may change the rules and decide that only US citizens living outside the USA will be entitled to collect social security. My tax guy warned me about that one. You've paid in for 12 years, and there is a tax treaty between the US and UK, so you want to make sure you are able to collect whatever pension you can at retirement (and yes, it will arrive before you can catch a second breath).
May 12th 2011, 1:51 pm
#10
Account Closed
Joined: Jun 2008
Posts: 760
Re: Heading back to good old Blighty!
www.irs.gov/pub/irs-pdf/p4588.pdf
this gives you the lowdown on filing/paying U.S taxes (it isnt anywhere near 5-10 years)
this gives you the lowdown on filing/paying U.S taxes (it isnt anywhere near 5-10 years)
May 12th 2011, 4:20 pm
#11
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Joined: Sep 2008
Location: Bouncing between Canada and US
Posts: 2,512
Re: Heading back to good old Blighty!
Please try your level best to also nail the citizenship first before you go, you'll have all options open to you then. 
May 12th 2011, 4:53 pm
#12
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Heading back to good old Blighty!
www.irs.gov/pub/irs-pdf/p4588.pdf
this gives you the lowdown on filing/paying U.S taxes (it isnt anywhere near 5-10 years)
this gives you the lowdown on filing/paying U.S taxes (it isnt anywhere near 5-10 years)
If I am a long-term resident, must I file Form 8854 for
the next 10 years after I surrender my green card?
You must file a Form 8854 for each of the 10 tax years
after the date of your abandonment of your long-term
resident status only if:
(a) your average annual net income tax liability for the
5 years ending before the date of your termination of
residency is more than a set amount ($124,000 for 2004,
$127,000 for 2005, $131,000 for 2006),
(b) your net worth is $2 million or more on the date of
your termination of residency, or
(c) you fail to certify on Form 8854 that you have com
plied with all of your U.S. federal tax obligations for the 5
years preceding the date of your termination of residency.
Failure to file a required Form 8854 in any of the 10 tax
years after the date of your termination of residency may
result in a $10,000 penalty for each year that the form is
required but not filed
